The acquisition aligns with Telefónica’s ongoing regional repositioning and is expected to deliver operational efficiencies through integration with Millicom’s existing infrastructure in the region. Millicom projects that the transaction will be Equity Free Cash Flow (EFCF) accretive as early as 2026, supported by immediate scale benefits and enhanced long-term synergies across its Latin American operations.
Millicom emphasized that the deal will diversify its cash flow base, thereby reducing business risk. This is underpinned by Uruguay’s stable macroeconomic outlook and investment-grade credit rating of BBB+, which provides a favorable environment for further investment and development.
Upon completion of the acquisition, Millicom’s leverage is anticipated to rise temporarily by approximately 0.1x. However, the company views this as manageable in the context of the broader financial benefits and strategic rationale of the deal.
Marcelo Benitez, CEO of Millicom, commented: “This acquisition represents a key milestone in our purposeful growth strategy across Latin America — especially in Uruguay, a country with strong fundamentals and a forward-looking digital agenda. We are committed to being a long-term partner in Uruguay’s digital development by investing in mobile infrastructure, improving service quality, and fostering innovation and talent development.”
The move enables Millicom to expand its presence in Uruguay, building on the country’s existing digital framework and positioning itself to support further technological advancements. The company also sees the acquisition as an opportunity to accelerate its contribution to digital transformation in the region by improving connectivity and expanding access to mobile and broadband services.
Millicom expects to generate additional value from synergies related to network optimization, operational integration, and resource consolidation. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close within the timeline typically required for deals of this nature.
With this acquisition, Millicom continues to pursue its strategy of targeted expansion within Latin America, reinforcing its commitment to sustainable growth and long-term investment in digital infrastructure. The company plans to leverage its regional expertise to further support economic development and digital inclusion in Uruguay.
